1. Field of the Invention
This invention relates to field of retail customer loyalty systems.
2. Prior Art
Customer loyalty systems are typically operated by merchants to aid in increasing business and improving customer relationships. As expected, customer loyalty systems have improved over the years. An example of a prior art customer loyalty system traditionally enrolls customers into a customer loyalty program and customers earned incentives (i.e. points, discounts, miles, etc) for purchases made using the customer loyalty program. When customers accumulate incentives (i.e. points, discounts, miles, etc) they typically redeemed them for rewards. The disadvantages with this type of loyalty system are that customers may only earn incentives when they themselves made a purchase.
To overcome the disadvantages of the previously described loyalty system, a new referral based loyalty system was developed and utilized by a variety of different industries. The referral based loyalty system promised customers the ability to earn additional incentives for referring new customers. The main focus of the referral based loyalty systems was to award existing customers for enrolling new customers into the loyalty system. The loyalty system customers were still given incentives (i.e. points, miles, discounts) for purchases as before and were promised an incentive (i.e. points, miles, discounts) for referring new customers. However, disadvantages still overwhelmed this type of referral based loyalty system. Customers typically became unmotivated to refer new business and many customers did not want to refer friends and family in return of a very small incentive to be earned.
To overcome the disadvantages of the previously described referral based loyalty system, an improved incentive referral based loyalty system was developed and utilized by a variety of different industries. The improved referral based loyalty system promised customers the ability to earn additional incentives for referring new customers, and promised to provide a bonus incentive to new customers if they were referred by existing customers. The main focus of the improved referral based loyalty system was to award existing customers for enrolling new customers into the loyalty system and to also provide an motivation to the existing customer to refer a friend or relative by enticing them with a generous incentive bonus that the new member would also earn for becoming a member. Customers were appreciative for earning incentives and rewards for referring new customers to the loyalty system, and were also appreciative that their referral also benefited from becoming a member. In spite these improvements; disadvantages still trouble this type of improved referral based loyalty system, customers were unenthusiastic for only receiving incentives for direct referrals.
A need therefore exists for a superior customer loyalty system designed to motivate existing customers into referring new business to a merchant.